Carbios (ALCRB) H2 2024 earnings summary

Executive summary

• Carbios, a pioneer in enzymatic recycling, focuses on PET and PLA plastics, aiming to lead the circular economy for plastics and textiles through proprietary biotechnologies and strategic partnerships with major brands and industrial players.

• 2024 marked significant progress in industrialization, including the operation of a pre-industrial unit, construction of the first PET biorecycling plant in Longlaville (suspended for 6–9 months pending financing), and international licensing agreements.

• The company advanced its PLA biodegradation solution (Carbios Active), expanded its patent portfolio to 58 families, and achieved key certifications (ISO 9001, ISO 14001, B Corp).

• Carbios maintains a robust financial position, with €109M in resources at year-end, and continues to invest in R&D, industrial scale-up, and international expansion.

Financial highlights

• Consolidated revenue for 2024 was €136K, up from €24K in 2023, mainly from feasibility studies and sample deliveries.

• Net loss widened to €33.1M (vs. €27.2M in 2023), driven by increased R&D, marketing, and administrative expenses linked to industrialization and commercial development.

• Operating expenses rose to €37.6M (from €28.9M), with R&D net expenses at €14.3M and capitalized development costs at €3.2M.

• Financial income improved to €4.4M (vs. €1.7M), reflecting higher returns on cash following a capital increase.

• Cash and equivalents at year-end were €89.8M, with an additional €19M in secured financial assets.

Outlook and guidance

• The company targets the completion and commissioning of the Longlaville plant, contingent on securing additional non-dilutive financing.

• International licensing agreements in China, Turkey, and the UK are expected to drive future revenue growth.

• A cost-reduction and reorganization plan, including potential layoffs, aims to extend financial visibility beyond 12 months.

• Carbios remains focused on signing pre-sale contracts for r-PET and monomers to ensure the economic viability of its industrial model.